# Trinomial Tree

*Quant & Pricing — Finicade finance glossary*

A trinomial tree lets each node move up, down or sideways, giving an extra degree of freedom over a binomial tree. That freedom is what allows mean reversion and time-dependent parameters to be built in cleanly, which is why interest-rate models like Hull-White are usually implemented this way. Convergence is faster and smoother than binomial for the same number of steps, at modest extra cost.

**Also known as:** trinomial lattice, three-branch tree

**Related terms:** [Binomial Tree](https://finicade.com/glossary/binomial-tree), [Backward Induction](https://finicade.com/glossary/backward-induction), [Hull-White Model](https://finicade.com/glossary/hull-white-model), [Finite Difference Method](https://finicade.com/glossary/finite-difference-method), [American Option](https://finicade.com/glossary/american-options)

Source: https://finicade.com/glossary/trinomial-tree